Tag Archives: TD Direct Investing

Which Self-Directed Brokerages Handle Which RESP Grants, Bonds and Incentives?

Posted on by

Most online self-directed brokerages offer RESPs within which you can receive the Canada Education Savings Grant, CESG. There are other grants and incentives available for some children, however, that not all brokerages are set up to handle. This is gradually changing as brokerages improve their offerings, so for the most up to date information, always speak with the brokerage you are considering. As of May 2014, however, this list summarizes which RESP grants, incentives and bonds are supported by which of the bigger self-directed brokerages.

What Government Grants, Bonds and Incentives Are on Offer for Children’s Education Savings?

I found information about the following federal and provincial government grants, bonds, incentives and programs to help save money for children’s higher education. There may be other programs: if you know of one, please add a comment to this article.

Federal Government Education Savings Programs

Provincial Government Education Savings Programs

Government Education Funds and Self-Directed Brokerages

In order for your child to get paid various government funds for higher education, the financial institution managing your child’s RESP must set up systems that meet the various government requirements. Not all brokerages have set up the required computer systems so they don’t all support all of the possible government programs available.
Before you choose a brokerage for your child’s RESP, one factor to consider is whether that brokerage supports the grants, bonds, programs and incentives your child is entitled to receive.

(Other factors may include things like

  • whether there is an annual fee for the account;
  • whether both parents can be subscribers and share rights to the account;
  • what the costs are to make various types of investments;
  • how easy or difficult it is to withdraw funds from the account when your child starts post-secondary education;
  • etc.)

The brokerages are listed in alphabetical order.

BMO InvestorLine RESPs Can Receive

the

  • Canada Education Savings Grant, CESG *
  • Additional Education Savings Grant, AESG *
  • Canada Learning Bond, CLB *
  • Alberta Centennial Education Savings Plan, ACES *
  • Quebec Education Savings Incentive, QESI, Basic and Additional Amount

Source: https://www.bmoinvestorline.com/home/getting-started/il/accounts/resp
*This information is also listed on the gc site.

There is no mention on the BMO website about whether they can receive the Saskatchewan Advantage Grant for Education Savings, SAGES. On the gc website, it does not report that InvestorLine can manage this grant.

CIBC Investor’s Edge RESPs Can Receive

the

  • Canada Education Savings Grant, CESG
  • Alberta Centennial Education Savings Plan, ACES
  • Quebec Education Savings Incentive, QESI

Investor’s Edge is not listed on the gc site at all.

I used the LiveChat feature to ask a CIBC Investor’s Edge representative what grants were supported. The agent replied: “CIBC Investor’s Edge currently offers the basic CESG, Alberta Centennial Education Savings Plan (ACES) and Quebec Education Savings Incentive (QESI).”

If you needed to receive the AESG or QESI additional amount I would suggest you confirm with CIBC IE before opening an account. It sounds like they may not be offered at this time (May 2014.)

Questrade RESPs Can Receive

the

  • Canada Education Savings Grant, CESG *
  • Additional Education Savings Grant, AESG *
  • Canada Learning Bond, CLB *
  • Alberta Centennial Education Savings Plan, ACES *
  • Quebec Education Savings Incentive, QESI

* This information is listed on the gc site.

The Questrade site only mentions the CESG, AESG and CLB. So I used Questrade’s online chat to ask an agent what is supported. He replied that all of the above government programs are supported and that they do not yet support the SAGES grant.

RBC Direct Investing RESPs Can Receive

the

  • Canada Education Savings Grant, CESG *
  • Quebec Education Savings Incentive, QESI

Source: http://www.rbcdirectinvesting.com/resp-account.html
*This information is also listed on the gc site.

I confirmed by sending a question via LiveChat that at this time in May 2014 those are the only grants RBC Direct Investing is supporting.

Scotia iTrade RESPs Can Receive

the

  • Canada Education Savings Grant, CESG
  • Additional Education Savings Grant, AESG
  • Canada Learning Bond, CLB
  • Alberta Centennial Education Savings Plan, ACES
  • Quebec Education Savings Incentive, QESI, Basic and Additional Amount

Scotia iTrade is not listed on the gc site at all.

I wrote an email to the iTrade support team. They don’t seem to have live online chat and I couldn’t find any details easily on their website. They replied 1.5 days later with the above information. The representative said that at this time (May 2014) they do not support SAGES.

TD Direct Investing RESPs Can Receive

the

  • Canada Education Savings Grant, CESG
  • Quebec Education Savings Incentive, QESI

Source: http://www.tdwaterhouse.ca/products-services/investing/td-direct-investing/accounts/resp/#content3 which states:
“TD Direct Investing offers only the Canada Education Savings Grant and the Quebec Education Savings Incentive, not any other federal or provincial grants or incentives.”

TD Direct Investing is not listed on the gc site at all.

The gc site is at: http://www.esdc.gc.ca/eng/jobs/student/promoters/list.shtml#B

The Master List of Banks, Credit Unions and Brokerages and Which Grants, Bonds and Incentives They Support

There is a massive online list available from the federal government of which institutions support which grants, bonds and incentives. It does not list the Quebec Education Savings Initiative, QESI, but it does list the CESG, AESG, CLB, ACES and Saskatchewan Advantage Grant for Education Savings, SAGES.

Transferring RESPs Between Institutions

Be VERY CAREFUL if you transfer RESPs between two institutions. There may be special paperwork required before the transfer is initiated to ensure the grant, bond or incentive monies do not have to be given back to the government that issued them. Discuss the move in detail with both institutions before you start it!

Related Reading

Join In
Do you receive any grants in addition to the CESG for your child’s education? If so, is your RESP at a brokerage? Please share your insights into maximizing your RESP value with a comment.

Online Brokerage Price Wars Spell Savings for Investors

Posted on by

It’s been an interesting two months for investors trying to pick an online brokerage. RBC Direct Investing decided to start a price war and it soon heated up – the best thing is that the fighting has resulted in savings for investors.

RBC Direct Investing Drops the Trading Fee for All Customers

RBC Direct Investing was the first company to make a major price change recently. This January, they reduced the cost to execute a trade to $9.95 for all of its clients, regardless of their account balances. So if one of their clients wants to buy 57 shares of BCE it will cost them just $9.95 plus the current trading price for 57 BCE shares.

TD (Waterhouse) Direct Investing Follows Suit

The next to drop its fee to $9.95 for all customers was TD Direct Investing. They changed their fees in February.

BMO InvestorLine Folds

InvestorLine has now also dropped its fee to $9.95.

Scotia iTrade and CIBC Investor’s Edge Are Still Studying Their Hands

As of today, February 11, 2014, iTrade and Investor’s Edge still require a minimum balance or a certain activity level or other related assets for their clients to qualify for $9.95 trades.

I give it about another week before they see the way the cards are falling.

Warning! Check for Minimum Balance and Inactivity Annual Fees

Don’t let the price per trade be the only factor in your decision to pick a brokerage. Look at all of the costs, including any fees for having a small balance or for not being an hyper-active trader.

I discuss the required minimum RRSP balances for most brokerages in Questrade Has the Lowest Annual Fee RRSP Brokerage Account with No Minimum Balance: Or Does It? but you should always double check for changes before opening an account.

Discount Online Brokerages Vs Big Bank Online Brokerages

There are a variety of other brokerages available to Canadians some of which offer trading fees which are even lower than $9.95. Their offerings vary considerably so you should check the details carefully. It’s also a good idea to look for reviews of their services and for any complaints before enrolling. (That holds true for all brokerages, independent or bank-affiliated.)

What Are Some Other Key Cost Differences Between Online Brokerages?

  • RBC Direct Investing has a good RRSP offer: If you sign up for pre-authorized contributions of $100 or more per month, the fee for having a low balance in your RRSP is waived.
  • CIBC Investor’s Edge has a no annual fee, no minimum, RESP account.
  • RBC Direct Investing and BMO InvestorLine let you have a USD side to your RRSP for no fee.
    CIBC Investor’s Edge and TD (Waterhouse) Direct Investing do not have a USD side to their RRSPs.
    Scotia iTrade charges a fee for a USD side to their RRSPs.

Related Reading

Join In
Are you pleased to see the costs to trade stocks and ETFs dropping for low asset investors at the “Big Bank” online brokerages? Please share your views with a comment.